Nifty Auto index rose up to 1% on December 1 amid strong wholesale sales numbers for November. Most automobile companies are expected to report a robust growth in sales across segments on the back of lower goods and services tax rates, reduction in interest rates, strong rural demand during festive season.
In early morning trade, Nifty Auto's 12 of the 15 constituents were trading in the green. Bajaj Auto rose nearly 1% after the company reported an 8% on-year rise in its total sales in November to 4,53,273 units, on the back of a 19% year-on-year increase in exports and a 3% rise in domestic sales.
Mahindra & Mahindra said on December 1 sales of its sports utility vehicles (SUV) to dealers rose 22% in November from a year earlier, driven by continued demand boost from tax cuts.
In September, India cut the goods and services tax on SUVs with engines over 1500 cc capacity to 40% from about 50%, aiming to spur consumer spending and bolster growth amid challenges from steep U.S. tariffs.
Around 80% of Mahindra's SUVs have engines over 1500 cc.
Mahindra, which launched a seven-seater electric SUV last week, sold 56,336 SUVs in November.
At 2 pm on December 1, Nifty Auto index was trading 0.8% higher with TVS Motor, Tata Motors Passenger Vehicles leading gains by rising 3.5% and 2.3%, respectively.
Shares of TVS Motor Company rose 3.2% to Rs 3,644 apiece and are among top gainer among auto stocks. The two-wheeler maker's sales volume in November jumped 30%, led by a nearly 60% surge in exports.
TVS Motor's electric scooter sales, where it is the market leader, surged 46%.
The stock rose 54% so far this year as compared to 22% rise in Nifty Auto.
Shares of Tata Motors Passenger Vehicles rose 2% to Rs 364 apiece on December 1 as the automaker said it sold 59,199 vehicles in November 2025, up 25.6% YoY.
Country's No. 1 carmaker by market share, Maruti Suzuki, gained 1% after 21% rise in monthly car sales, driven by continued demand boost from tax cuts.
Analysts said car demand is driven by customers upgrading to premium models, while entry-level segments show little sign of recovery, reported Reuters.
In late September, government reduced the goods and services tax on SUVs with engine capacities of more than 1500 cc to 40% from about 50% and on small cars to 18% from 28% in a bid to spur consumer spending and bolster growth amid steep US tariffs.
Hyundai Motor India shares rose 3.83% to Rs 2,415 apiece as the company sold 66,840 units in November, 9.1% higher YoY.
Domestic sales rose 4.3% YoY to 50,340 while export sales increased 26.9% YoY.
So far in 2025, Hyundai Motor India shares rose 34%.
Meanwhile, shares of Eicher Motors rose 2.54% to Rs 7,238 apiece as the trucks-and-bus maker said total sales for November 2025 from its VECV joint venture with Volvo group rose 37.3% compared to last year, to 7,652 units, including EVs.
So far in 2025, the stock rose 50.1%.
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